Sunday, July 27, 2008

Korean Police Investigate Massive Leak of Personal Data

Police are investigating the leak of about 9 million items of personal information from the internet, allegedly obtained by a China-based hacker and misused by online Korean moneylenders.

Four private loan brokers in Seoul bought the stolen data for 15 million won ($14,900) from the hacker who allegedly broke into about 2,000 local websites in May 2006 using a computer program called "HDSI 2.0," the Seoul Metropolitan Police Agency said.

The suspects also resold the data to other loan businesses and mail-based marketing firms. They had raked in 220 million won from the sales between May 2007 and February 2008, police said.

A total of eight suspects were rounded up after the police crackdown from December 2007-February 2008. Two key suspects fled to China and police are tracing their whereabouts, officials said.

They also made random phone calls to encourage cash-strapped individuals to borrow money from private lenders. They collected fees amounting to 2.5 billion won [roughly US$2.48 million -ferg] from both lenders and borrowers, police said.